Gold prices head south in Asia
On Friday, gold prices traded lower during Asia trade, following the better-than-expected Chinese GDP. That’s a bit of a dampener on hopes for easier monetary policy in this Asian country and it also ensured copper rebound.
In New York, August delivery gold futures sagged 0.28%, being worth $1,328.50 per troy ounce. Silver futures for September delivery slumped 0.34%, trading at $20.252 per troy ounce. Meanwhile, September delivery copper edged up 0.36%, trading at $2.247 per pound.
Overnight, gold sank abruptly in broad risk-on trade, because a JPMorgan-driven surge sent equities on Wall Street growing to fresh record-peaks while traders stood away from a bevy of safe-haven assets, reacting to a sudden decision from the BoE to hold its key interest rate intact.
Since getting to 28-month peaks last week, the number one precious commodity has closed lower in five of the previous six trading sessions while losing about 2% in value.
Additionally, any rate lifts by the Fed in 2016 are considered to be bearish for gold, because this commodity struggles to take on high-yield bearing assets in surging rate environments.